If you are looking to get into the fast-paced world of online sales, there are a couple of avenues you can take. Boutique shops online are a bit more difficult to establish than they are when talking about brick and mortar, but a specialization can draw in customers, as long as you find a way to get their attention. One avenue that some of the biggest retailers in the world have decided to travel down is the discount retail road.
When done right, discount shopping is one of the more popular roads to travel, because it brings in customers in droves. Especially in this economy, everyone is looking to save a little money on whatever they go shopping for. Stormy Simon and Overstock.com actually got into the game rather late, but have become known as one of the most popular online discount retailers in the world.
Veterans In the Game
Overstock is a relative newcomer but in the discount online retailer market, the company is actually a bit of a veteran. The granddaddy of them all is Amazon.com and they’ve certainly done the discount retail business right. One of the reasons Amazon has been able to stay ahead of the game for as long as it has, is because of the massive number of different products it offers.
Just because there are veterans like Overstock and Amazon doesn’t mean the discount ecommerce field is too full to get into. The recent entry by Alibaba into the American market is a good indication of this fact. While Alibaba is well known across the pond, it didn’t ever really operate in the American market until June of 2014. It’s still not a rookie corporation and it actually means you starting from scratch has another competitor.
That doesn’t mean you are going to lose the online retailer game simply because some companies already know how to play it or have been playing it longer than you have. There is always room for more online discount retailers, especially if you can find a way to offer products that are hard to find, or are at deeper discounts than the big wigs can offer.
Having The Right Merchandise
If you are going to open an online discount retail outlet you want to make sure and get the right kind of products to sell. One dirty little secret in the online discount retail business is that there are a number of products you can get from wholesale companies cheaper. This means you can turn around and sell those products cheaper as well.
You will need to tread lightly in this area. While these products are built to look as though they are high fashion or high quality, they are actually knockoffs. If your shoppers care more about saving money than getting top of the line products, you won’t find a problem here. If your customers are only looking for the right label, you will lose those customers rather quickly.
Know Your Customers
This really boils down to knowing what kind of customers are going to come to your store front. You need to make sure that whatever products you offer at a deep discount, it will lure in the people. A good rule of thumb is to diversify as much as you possibly can in the beginning. Once you’ve set up a following, you can measure what kinds of products these customers are purchasing and decide what sort of products you should carry in the long term.
If you are careful in the products you offer and make sure you understand your clientele, you will be able to have a measure of success in a market that is plenty full already. Because people are always on the hunt for deals and discounts, those people are also more willing to give a relative unknown a try at least once. Keeping them coming back after they’ve given you that first try is the key to having long term success.
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